Gold: Has the rally got legs?

Gold prices clocked a low of $1205.02 on July 10 before a technical recovery amid broad based USD sell-off helped the traditional safe haven asset recover to $1233 levels (last week’s high). As of now the metal is trading around $1230 (200-DMA) levels.

The CME data shows the Open Interest in the gold futures dropped by 2807 contracts on Friday, which suggests the sharp gains were largely fuelled by the withdrawal of liquidity/short unwind.